Blockstream CEO Labels Ethereum, Cardano, Ripple, & Stellar As A Ponzi Scam Like Bitconnect

Adam Back, Blockstream CEO and well-known computer scientist in the crypto community, went on a rant on Twitter dissing several high profile blockchains, including the second-largest crypto project, Ethereum. He compared these blockchains to “Ponzi schemes.” Back wrote on Twitter:

“Bitconnect, Charles Ponzi, Ethereum, Onecoin, Cardano, Ripple, Bernie Madoff, stellar, Dan Larmer. All looking very similar grade to me.”

As a Bitcoin maximalist and developer, Back was critical of some of the top altcoins, Ethereum being top of the list. According to him, the exploits of Ripple, Ethereum, Cardano, and Dan Larimer’s founded EOS, are all similar to the two most known financial conmen, Charles Ponzi (who originated Ponzi schemes) and Bernie Madoff, the billionaire Ponzi market maker.

Moreover, the list also includes two of the biggest crypto-based scams in Bitconnect and Onecoin, the latter costing investors close to $4 billion in funds invested.

Explaining his choice of projects in the tweet, Adam claims the four projects mentioned do not follow his belief in “hard money, meritocracy, and ethics.” He further explains:

“I think there are unicorn dreamers who got trapped in magical thinking with themselves as a self-regarded tech genius and central bank policymaker. Reality is they are misallocating capital, scam 2.0, idiocracy.”

On Ethereum, he explains: “70% of pre-mine and ethics are incompatible. Eth continually over-markets undelivered or junk tech.”

Also Read: Blockstream CEO Adam Back: Now-Defunct Theranos Was Similar To Ethereum

Bitcoin Maximalist or Wrong Take?

Back’s comments, however, have not been taken lightly by the named parties and the community at large. Some resorted to terming Back a BTC maximalist as one of the starting developers on Bitcoin.

Dan Larimer, the founder of EOS, replied harshly stating:

“My respect for you has disappeared if you are willing to paint me and others with the same brush. I thought you were more reasonable, civilized, and intelligent.”

Ethereum Founder, Vitalik Buterin, hit back at Adam’s comments claiming “the tides of history will not be favorable to maximalists.” He tweeted,

IOHK Founder and Cardano founder, Charles Hoskinson dismissed Back’s comments as “sad and pathetic.”

A Decentralized Field… Different Opinions

As far as decentralization goes, there will always be different opinions on subjects and projects. The rising tide of Ethereum and DeFi space, in general, could be encroaching in BTC’s territory hence the pushback by BTC maximalists.

In this case, Adam’s comments may hold up in the future, but the blockchains keep growing and developing (some faster than BTC). One thing it shows is every belief wins in a decentralized community. Changpeng Zhao “CZ,” CEO of Binance had good fun in the back, and forth it seems:

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Author: Lujan Odera

Ripple Buying Back XRP in the Secondary Market at Market Prices Reveals Q2 2020 Report

In its Q2 2020 report, the fintech company Ripple shared that it has been buying back XRP and may continue to do so in the future, in contrast to what the market has been accusing the company of — dumping on XRP investors. The report reads,

“Ripple has been a buyer in the secondary market and may continue to undertake purchases in the future at market prices.”

Where on one side former Ripple CTO Jed McCaleb, who was owed 9 billion XRP by Ripple, has been constantly selling his stash — about 1.74 million XRP per day in the market in 2020 which increased by 266% compared to 2019, on the other side the company has been purchasing the digital asset at market prices. A Ripple enthusiast said,

“This means that the FUD that “Ripple dumps on its investors,” is actually the complete opposite of reality. Ripple is acting as a benevolent whale, countering the bad whales. This won’t increase the price, but help prop it.”

The report also stated that the second quarter of 2020 saw its programmatic XRP sales remaining zero.

However, the over-the-counter (OTC) sales increased from $1.75 million in the previous quarter to $32.55 million XRP in 2Q20. This sale has been “part of providing increased XRP liquidity to RippleNet’s On-Demand Liquidity (ODL) customers,” which it says is “vital as ODL continues to evolve and expand into new corridors.”

According to Ripple, a healthy orderly XRP market is required to minimize both cost and risk for customers, and Ripple continues to play a “responsible role” in this liquidity process. It says,

“As more financial institutions leverage RippleNet’s ODL service, more liquidity is added into the XRP market.”

In the last quarter, ODL accounted for about 20% of RippleNet volume, which is an 11x year-over-year growth thanks to the increased volatility and exposed risk due to the crisis.

The daily volume, meanwhile, decreased in Q2 2020 at $196.28 million versus $322.66 million in Q1. Its volatility also fell from 6.2% to 3.0% over the quarter, which was “lower” than bitcoin’s 3.4% and Ethereum’s 4.2%.

However, its price is now back to moving. In the past ten days, it jumped 60% but is in red today just like the majority of the crypto market, trading at $0.30 — last seen in February just before the market-wide sell-off.

Ripple has also taken to reduce its emphasis on large treasury payments to focus on supporting “individual, low-value transactions, addressing the growing need in remittances and small- and medium-sized enterprise payments.”

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Author: AnTy

Bitcoin Again on the Move Amidst “Increasing Market Demand”

Bitcoin is back on the move today. Volatility has been expected as options for 67,700 Bitcoin worth $745 million are expiring today.

Currently, the largest cryptocurrency is trading just under $11,400, up more than 3%, with over $2 billion in trading volume. In the past ten days, BTC has surged 24.5% that has resulted in the number of bitcoin addresses holding 1 million USD spiking by 38% to about 18,000.

Also, a whopping 93% of bitcoin’s supply is at a profit with the price at $11k.

Interestingly, BTC deposits at major exchanges continue to drop, which has been falling since March after the digital asset crashed along with the other asset classes. The deposits have currently reached the low-levels, last seen in May 2019, which suggests users prefer to store their BTC in private wallets. Moreover, it “may lead to a lower selling pressure the upcoming months.”

“Despite BTC’s recent surge to $11k, there are currently no signs of weak hands from long-term investors,” noted Glassnode. “Hodler Net Position Change remains positive since the end of March, with hodlers currently accumulating more than 50k BTC each month.”

However, Ki Young-ju, the CEO of on-chain analysis firm CryptoQuant, said whales have started to send Bitcoin and stablecoins to exchanges. He said,

“BTC whales are sending Bitcoins to exchanges. Stablecoin whales are sending stablecoins to exchanges as well. This week will be a battle between Stablecoin and Bitcoin exchange inflows. These inflows indicate potential buy/sell pressures.”

So Much HODling & Accumulation

Bitcoin gains are recorded amidst the amount of USDT flowing into exchanges spiking to yearly high. All the while, Tether continues to mint millions more USDT that “hints at increasing market demand and could potentially support further Bitcoin price appreciation,” states OKEx.

The exchange’s one-month futures annualized basis has also surged to as high as 27.67%, its highest level since late February. “Values above 20% indicate that traders are paying a very high premium on spots and using high leverage,” OKEx said.

Just this week, Bakkt recorded peak volume twice in a row while CME saw its open interest making new highs. Regarding the slow adoption of its bitcoin options product, CME Group continues to “work with both brokers and platforms to get them connected and up and running to facilitate trades with customers.”

Another bullish development seen in the market is the 1-year HODL wave, which has been unmoved on the blockchain over the last 365 days.

Additionally, this Bitcoin 1-year HODL wave has hit a new all-time high of 63%, up 1% since the start of July.

The fact that an increasing number of bitcoin investors are HODLing with no pressure from any sell-side in the form of deposits to exchanges speaks well for the world’s leading digital currency.

At this point, if bitcoin closes above ~$14,300 on the 12 Monthly charts, that would be one of the most bullish developments in this new cycle, said analyst Rekt Capital.

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Author: AnTy

Bitcoin Futures OI Surpasses $4B, BitMEX Regains its Dominance While Bakkt is A Ghost Town

The Bitcoin market is back to seeing some action.

As the price of the BTC moves, so does the volume and open interest. Open interest for bitcoin futures on crypto derivatives exchange BitMEX has yet again exceeded $1 billion, back to the pre-March crash level.

The sell-off on March 12th hit BitMEX the hardest as it’s bitcoin balance dropped substantially. But now the total open interest on the exchange has returned to its levels of January.

Interestingly, before the March crash, BitMEX accounted for 36% of the total OI in the bitcoin futures market only to lose its market share to OKEx, which became the leading bitcoin futures platform in terms of OI.

But BitMEX took its top spot back recently and is now accounting for 23% of the total OI, as per Arcane Research.

Not just on BitMEX, but the total open interest in the bitcoin futures market has recovered to the pre-crash levels, currently at $4.362 billion, and is now on its way to February high.

This time, however, the OI is more evenly distributed among the participants that it was before the sell-off.

Huobi, Binance, and CME all hold more than 10% of total OI share while Bakkt has a mere 0.20%.

Total Open Interest Futures Market
Source: Arcane Research

Bakkt is not only performing badly in terms of OI, but pretty much nothing is going on the ICE-baked platform, whose launch was once highly coveted by the market.

Bitcoin futures volume on the exchange remained below $30 million, which has grown to $48 million this week. The only exchange on par with Bakkt is Kraken. As for the open interest in Bitcoin futures, Bakkt holds the lowest place at just $7 million, followed by CoinFlex at $8 million.

When it comes to its bitcoin options product, Bakkt has nothing to showcase because absolutely $0 has been traded in volume and recorded in OI for over a month now. The Bitcoin options market remains under the dominance of Derbit, which controls 92% of volume recording $161 million in volume and $1.3 billion in OI on July 23rd, as per Skew.

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Author: AnTy

Circle and Coinbase’s USDC Becomes Second Stablecoin to Hit 1 Billion Circulating Supply

USDC, the dollar-pegged stablecoin launched by Circle and Coinbase back in October 2018, has become the second stablecoin to see its circulating supply surpass the 1 billion mark after Tether’s USDT.

USDT maintains a commanding lead within the stablecoin market with its total market cap exceeding $10 billion on June 30, only behind Bitcoin and Ethereum. This also makes USDC the 18th cryptocurrency in the decentralized space to have a 10-digit circulating supply.

The cryptocurrency market has seen a surprising uptick in demand for stablecoins like USDT and USDC, especially after the Black Thursday crash of the crypto space, which saw the value of Bitcoin and almost every other altcoin fall by over 50%.

The volatile nature of cryptocurrencies has made investors seek out stable assets to hedge their risk in troubled times. Thus the demand and use of stable coins have grown significantly.

Joao Reginatto, director of product manager at Circle, took to Twitter to announce the $1 billion circulating supply for USDC.

The Stablecoin Market Dominated by Tether

Stablecoins were invented to help provide easy on-boarding for investors, as in the beginning, and even now, many countries do not allow for direct purchase of crypto via fiat. Consequently, stablecoins have been in high demand since the advent of crypto exchanges. However, now it has become an integral part of the ecosystem, and people are also using it to hedge their risk.

With several stable coins available in the market including USDT, USDC, Paxos Standard (PAX) and TrueUSD (TUSD), Gemini Dollar (GUSD), and many more, a majority of the market is captured by USDT itself, where it enjoyed a market dominance of over 90% followed by USDC with near 3%-5%. The remaining stable coins control a fraction of the available market.

Source: Skew

A recent study from Skew suggests that USDT’s dominance is no more limited just to spot markets, and USDT-margined derivatives contracts are emerging and could gradually replace coin-margined contracts over the next year.

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Author: James W

Bitcoin May Have A Negative Quarter Ahead But That Won’t Be Atypical

Since falling earlier this week, the bitcoin price has been struggling to get back up. BTC/USD continues to trade under $9,200 in red on low volume.

But this shouldn’t be of much concern if history is any guide.

If we take a look at the quarterly returns, the quarter 3rd of 2016, the year bitcoin had its second halving, the returns were negative 9.21%. The last bitcoin reward halving took place in July 2016.

The month after the halving in 2016, bitcoin recorded negative returns which were because of the Bitfinex exchange hack and Ethereum DAO attack.

As such, analyst Rekt Capital says, “Negative Quarterly Returns for BTC this coming Q3 wouldn’t be out of the ordinary for a post-Halving period.”

In a separate tweet a few days back, the analyst has noted that, based on the world’s leading digital currency’s historical quarterly performance, “Chances are Bitcoin could see some downside in Quarter 3,” as well.

In the past six years, in four years the upcoming quarter recorded negative returns with the exception of the 2017 bull run and 2018 bear market.

Quarter 1 has been pretty much the same, heavily skewed towards losses historically and we end up falling in 2020 as well. Meanwhile, the green Q2 over the years resulted in gains for 2020 as well. Although past performance doesn’t guarantee future results, it is something to keep in mind.

Analyst PlanB also shared that monthly returns during the last halving have been “very asymmetrical.” But if Bitcoin has its typical month with substantial gains, we can easily climb to $12,000.

In contrast, if we look at the downside, the analyst points out there have been only two times that a negative 30% move happened in the last four years but a 30% spike happened 10 times which means the corrections might not be deep.

While many are hoping for bitcoin’s drop to $7,000, a drop of 25% isn’t that typical which we saw in March this year during the coronavirus pandemic wide market sell-off. Before that, we saw it thrice in 2018.

According to PlanB, $7,000 “seems highly unlikely” with all the money printing the governments are doing. “COVID just triggers more QE, which is net positive for both stock markets and BTC,” he said.

However, bitcoin remains correlated with the S&P 500 and a lot of bad news is converging on Wall Street. While the market sentiments have started to turn bullish, COVID-19 and political risks are rising. Moreover, the period of July to October is a seasonally weak time of year.

The International Monetary Fund has also warned that investors are “betting on continued and unprecedented support by central banks” and the disconnect between the market and economy is raising the risk of another slump in prices.

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Author: AnTy

China’s National Blockchain Service Network Integrates Chainlink; Pushes LINK Prices Near ATH

Chainlink is back to recording gains, up nearly 12% on the back of partnership with China’s national Blockchain Services Network.

The recently launched BSN will be integrating the Chainlink oracle function to its network that enables governments and enterprises to incorporate real-world data such as IoT data, weather, location information, and financial asset prices into their BSN applications. SNZ pool, a PoS operator, will run nodes to support the operation.

Chainlink will be integrated into BSN via the interchain service hub of IRITA, a consortium blockchain product. It will allow BSN blockchain to receive external off-chain data through Chainlink oracles.

The interchain service hub is the first step toward achieving easy and convenient interoperability among all the decentralized applications (Dapps) deployed on the network. Xiang Dai, Deputy Secretary of the BSN Development Association and Director of Planning and Consultation with the China Mobile Group Design Institute Co., Ltd. said,

“We believe that this integration will transform blockchain applications and foster greater growth of the BSN ecosystem – in China and around the world.”

Providing Interoperability to all DApps

This integration is said to provide BSN users reliability, interconnectivity, and additional security to help fuel the growth and adoption of blockchain applications in China and around the world. Sergey Nazarov, co-founder of Chainlink said,

“We’re excited to help build out BSN’s global infrastructure project by providing secure and reliable oracle services. By connecting BSN applications to real-world data, smart contracts can bring new levels of automation and trust to global agreements.”

A working prototype using Chainlink oracle is already underway, and BSN and SNZpool have also allocated resources to support the development of node infrastructure to run IRITA and Chainlink nodes.

BSN is designed to be a one-stop-shop for companies to access ultra-low-cost blockchain cloud computing services. It is used by the likes of China’s State Information Center, China Mobile, China Unionpay, and Red Date Technologies.

“One of the main purposes of BSN is to provide interoperability to all DApps, regardless of whether they are for permissioned chains or public chains,” said Yifan He, CEO of Red Date Technology and BSN co-founder. Also stating,

“On BSN, each Dapp should be able to call any other Dapps in a very convenient and low-cost way.”

More Bullishness

Today, Chainlink also announced that the Ontology network is working towards a mainnet deployment of Chainlink to securely access off-chain data feeds, web APIs, and traditional bank payments. Andy Ji, Co-founder of Ontology said,

“Chainlink has demonstrated a stellar track record in providing bespoke oracle solutions to leading global enterprises including Google, Oracle, and SWIFT.

This experience underlines Chainlink’s credentials as the undisputed, market-leading decentralized oracle network.

This collaboration marks another milestone in our platforms’ long-standing and fruitful relationship, and we are excited to see this integration come to life.”

LINK is today’s biggest gainer among the top 50 cryptocurrencies. The 13th largest cryptocurrency by market cap of $1.6 billion is currently trading at $4.80, just a little off from its all-time high of $4.95 hit on March 4, 2020. In 2020 so far, this hot cryptocurrency is up 160%.

Amidst this price action, people are removing their LINK from cryptocurrency exchanges. Over 285k LINK has been withdrawn from the Huobi exchange in the past 24 hours.

But this isn’t anything new. The total amount of LINK on exchanges has been declining since May 2019.

chainlink-link-tokens-on-exchange-wallets

This behavior, however, is further bullish for LINK as this indicates the investors are preferring hodling instead of taking profits.

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Author: AnTy

Bitcoin Pops Up on More QE But No Reason to be Overly Bullish Yet

After falling below $9,000, Bitcoin is back to hovering around $9,500. The leading cryptocurrency has been trading in this range since early May and continues still but on low volume.

The Commitment of Traders (COT) report doesn’t paint a good picture with CME Dealers net short, the bias actually increased by 35% last week, the biggest exposure the sell-side had.

But these gains came in line with the US stocks market after the Federal Reserve said on Monday that it will start buying individual corporate bonds. Although nothing new, markets went wild with FOMO (Fear of Missing Out).

Unlimited QE

The Fed has already committed to prolonged use of QE which “may represent a major turning point for the US Dollar,” said Koyfin. Currently, sitting on medium-term support, if DXY breaks below, it would likely be the start of a downtrend.

This suggests future outperformance of Technology, Materials, Energy, and Industrials, emerging markets, and bitcoin.

San Francisco Federal Reserve President Mary Daly in turn called on fiscal policymakers to boost spending on education, healthcare, and digital infrastructure.

“Much more will be needed in order to build a strong economic foundation that will allow a full recovery and sustained expansion,” Daly said.

There are also reports that President Donal Trump’s administration is preparing for a $1 trillion infrastructure proposal.

Bitcoin pumped in response with added support from Bank of Japan’s decision to pump $1 trillion to combat the effects of the pandemic.

On Monday, the markets were driven by the fear of the second wave of coronavirus. But today, Bitcoin is yet again back to trading like a stock as equity volatility spikes.

Bitcoin is consolidating

Stocks might have jumped higher but according to analyst Benjamin Blunts, S&P 500 and other equities had a “5 wave decline on 4h,” which “indicates the start of a larger pullback.”

Now, that bitcoin is correlating with risky assets again, although it is not expected to last forever, “a 5 wave decline on equities does not bode well for BTC in the next few weeks.”

Analyst Rekt Capital believes currently there is no reason to be overly bullish until bitcoin breaks above $9,800 on the weekly and overly bearish until we break below $8,700.

Bitcoin ranging isn’t anything new either, historically, there has been a lot of consolidation after every halving and this time is no different.

“This is the 7th week that Bitcoin has been consolidating within a $8700 – $9650 range,” noted the analyst.

Bloomberg has already made a call for bitcoin to target $20,000 this year. But the more important thing here is the fact that Bloomberg has now made this data available to over 300,000 Bloomberg Terminal users and now those institutional investors don’t have the excuse to ignore this asset class anymore, said Arca CIO, Jeff Dorman.

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Author: AnTy

New Theory Claims ‘Satoshi Nakamoto’ Helped Run Drugs for Kingpin Pablo Escobar

Since the launch of the Bitcoin mainnet back in 2009, the most intriguing aspect of the top cryptocurrency has been its pseudo-anonymous founder, Satoshi Nakamoto.

The creator of Bitcoin has remained anonymous even after Bitcoin peaked at its highest back in 2017, which has given rise to speculation, conspiracy theories, and of course, impersonators. Many Bitcoin pundits and crypto veterans have claimed to know the real identity of the Satoshi Nakamoto, but none have yet revealed his true identity.

There are several theories behind who could be the actual creator of Bitcoin and people have pinpointed several individuals, but none have been convincingly proven to be the original creator. However, a new theory has hit the market which could link the anonymous Bitcoin creator to one of the most infamous drug lords Pablo Escobar.

The theory suggests that one Yasutaka Nakamoto who held a high-ranking engineer post for Pacific West Airlines before going on to work for the notorious drug kingpin Escobar himself. The theory suggests that Yasutaka first disappeared from public life back in 1992 after an assassination attempt, and later emerged towards the second half of the 2000s to create Bitcoin. The theory was put forward by Olof Gustaffson, CEO of Escobar Inc.

Apart from running a multinational company associated with the former drug kingpin, Gustaffson also worked as a right-hand man to the brother of Pablo Escobar. When inquiring about the motivation behind this absurd Satoshi Nakamoto theory, he said that he was revealing all this now because of the self-proclaimed Bitcoin creator Craig Wright’s continuous lies and failed attempts to prove he is the original creator of Bitcoin.

Gustaffson further claimed that Yasutaka could be a perfect fit for the role of Satoshi Nakamoto since he agreed to help Escobar smuggle drugs through the airline he was working with, but never pledged his loyalty. Gustaffson also claimed that being an engineer, Yasutaka had access to microprocessors and semiconductors which acted as a building block for him and apply his knowledge for the creation of Bitcoin.

The Dorian Nakamoto Connection

The only publically available profile for Yasutaka Nakamoto that matches Gustaffson’s story is that from a 1992 Los Angeles Times article which talks about the probable Nakamoto working for Hughes Aircraft, managing to escape unscratched from a pipe bomb found in his car and possibly planted on a directive from Escobar. Since that incident, Yasutaka disappeared from the public eye.

The probable Satoshi Nakamoto also has a connection with another personality whose face is still used as a representation for Bitcoin creator in numerous articles and publications, Dorian Nakamoto.

Dorian Nakamoto was subjected to intense media exposure in 2014 when an article back in 2014 claimed that he could be the actual Bitcoin creator. Dorian denied being involved in the creation of Bitcoin and asked for privacy.

However, Gustaffson pointed towards Dorian’s white page entry which mentions his age, area of residence along with six relatives one of whom is Yasutaka A. Nakamoto. Gustaffson claims that the Nakamoto listed by Dorian and the one he has been talking about are the same person and the actual Bitcoin creator the world has been looking for. He commented:

“We believe his middle name is Akiko, and that he later went by the name Akiko. A man by the name Akiko was registered at the address of Dorian in California.”

The likelihood deepens when one goes through a US phonebook search for the same name, which lists four of Dorian’s relatives for one Akiko Nakamoto and both Dorian and Yasutaka lived at the same listed address. Gustaffson claimed that Dorian knew about bitcoin all along and has even come to Colombia to do business with Roberto Escobar in 2014.

While a majority of conspiracies about Satoshi’s identity looks quite close and this one is no different, but there is no conclusive evidence to verify the claims or negate any doubts.

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Author: Silvia A

Despite Testing $10,000 Multiple Times, Bitcoin Bulls May Not Arrive Yet

Yet another week of bitcoin testing $10,000 and we are back at trading around $9,600. Since the halving on May 11, the digital currency has been trading in narrow ranges.

Historically, the event has led to bitcoin rallies. Since halving, so far BTC/USD has gained just over 12% but the overall technical momentum was still negative as it had more down days than up days. Nicholas Pelecanos, head of trading at NEM Ventures said,

“Bitcoin is on a see-saw, between bulls and bears.”

“On one end, we have network data and technicals; the other, strong fundamentals and a correlation to U.S. stock indices.”

The bitcoin network data is flashing more bearish signals than bullish, as such, he is expecting further short-term selling.

Cryptocurrency exchanges are also seeing a huge inflow of BTC which could be with the intent to sell their coins.

On-chain data also indicates a change in behavior from miners and they are selling inventory but according to Adamant’s Tuur Demeester this is “bullish” because “healthy bitcoin miners are hodling, and struggling miners have little BTC left to sell.”

According to Miner Outflow Multiple, the ratio of miner outflow in USD and its 365 day MA, miners moving a large amount of bitcoin is currently near its all-time low.

The underlying fundamentals of bitcoin are healthy with mempool data back to its normal levels, transaction fees reverting to lower levels and the hashrate stabilizing at a reasonable level.

Major Chinese mining equipment makers, Bitmain and MicroBT have also been dispatching their most efficient ASIC miners; AntMiner S19 and WhatsMiner M30S. Miners have also been active users of the fast-growing borrow/lend crypto market.

Meanwhile, futures premiums continue to go up with CME traders still more bullish than the retail-focused platforms.

Bitcoin has barely scratched the surface

In the short term, bitcoin might still have to weather the bears but in the next six to twelve months investors are expected “to reap the rewards of post-halving price movements.” Lennard Neo, head of research at Stack Funds said,

“In reality, there is a significant time lag between the halving event and the establishment of renewed market equilibrium based on general supply and demand.”

Besides the supply side affected after the halving and the times for miners to find their break-even point increased, investors are also banking on institutional demand.

Amidst the coronavirus pandemic, fund flows into crypto asset managers have been robust.

Grayscale is already consuming more Bitcoin than mined since halving. Since April, the firm has had its bitcoin investment funds ballooned to $3.5 billion as of June 2nd, up from $2 billion at the end of the first quarter. Michael Sonnenshein, managing director at Grayscale with $4 billion in cryptos assets under management said,

“There’s a lot of momentum and interest in investing in digital currencies particularly in the face of uncertainty, the pandemic, political tensions, and the amount of stimulus being pumped into the global economy.”

According to James Wo, chairman of Digital Finance Group, a $500 million crypto and blockchain fund, bitcoin is digital gold and as such, has barely scratched the surface. He said,

“Bitcoin has great potential to grow.”

“Gold has an eight trillion-dollar valuation, while bitcoin has less than $200 billion dollars in valuation. It just needs more time for mainstream adoption. People need enough time to fully understand and believe in it.”

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Author: AnTy